// eor vs entity
Compare the cost of an EOR and your own entity
Compare sourced entity setup and compliance ranges with published EOR service fees. Add your estimates for payroll, HR administration and management time. Salary and statutory employer costs are excluded from both sides; the result compares overhead, not every obligation or service involved in employing someone.
Australia: estimated costs meet at roughly 0.3–0.7 employee
With these estimates, running your own entity costs less than the EOR service fees. Compare included services and additional costs before deciding.
EOR fees / year
$29,940
5 × $499/mo median fee (25 priced providers)
Entity overhead / year
$1,733–$3,700
compliance + your administration estimate + setup/exit spread over the selected years
Year one, entity route
$2,400–$5,100
setup + first-year compliance and administration; exit excluded
annual overhead vs team size · employees along the x-axis
The sourced dataset
Entity costs vs EOR fees, by country
Setup is the one-time cost of forming the entity (excluding share capital, which stays your money). Annual is the recurring compliance overhead: accounting, statutory filings, secretarial and local requirements for a small foreign-owned subsidiary. Break-even is the team size where a year of EOR fees at the median published rate crosses that annual overhead.
| Country | Entity setup | Entity annual | Median EOR fee | Break-even |
|---|---|---|---|---|
| Australia | $1,000–$2,100 | $1,400–$3,000 src | $499/mo | ~1 employee |
| Brazil | $1,000–$4,600 | $12,000–$35,000 src | $499/mo | ~2–5.8 employees |
| France | $2,700–$9,000 | $2,200–$7,000 src | $499/mo | ~1–1.2 employees |
| Germany | $1,600–$5,400 | $3,200–$8,600 src | $499/mo | ~1–1.4 employees |
| India | $250–$600 | $500–$1,800 src | $459/mo | ~1 employee |
| Netherlands | $1,300–$2,700 | $1,600–$4,300 src | $499/mo | ~1 employee |
| Singapore | $250–$1,200 | $1,200–$4,000 src | $499/mo | ~1 employee |
| United Kingdom | $200–$1,000 | $1,300–$3,900 src | $499/mo | ~1 employee |
| United States | $500–$1,500 | $2,400–$4,700 src | $459/mo | ~1 employee |
Ranges compiled as of 2026-07-12 from official registries and reputable formation and accounting guides (per-row source links). Median EOR fee = the median published base price among providers covering the country in our dataset. Indicative, not advice: complex payroll, audits past size thresholds, resident-director requirements and banking friction can move the entity side materially. Countries appear here only when we could source both cost ranges.
Before you decide
What the arithmetic leaves out
- Time: confirm onboarding, registration and banking timelines for your country and hire. Neither route has a universal start date.
- Liability: with your own entity, employment risk and statutory filings are yours, not a provider’s.
- Locked capital: some countries require share capital (Germany’s GmbH: EUR 25,000, half paid in) — your money, but parked.
- Winding down: either route can involve notice, termination obligations, transition work and fees. Ask what your contract and local requirements entail.
- Payroll itself: an entity still needs someone to run local payroll — software or a local payroll provider, per head.
A crossover tells you when the modeled overhead overlaps. It does not establish that the two routes offer equivalent services, that all costs are included, or that an entity is the right choice. Confirm the operational responsibilities and your expected tenure. Estimate the full per-employee cost with the calculator →